Web sites can be used to market insurance policies. An insurance buyer can go to a web site to obtain a price for an insurance policy, and to apply for a policy. The web site is typically governed by an expert system that collects information from the buyer and guides the buyer through the process of applying for insurance.
The web site medium has been suited to marketing certain types of insurance, such as automobile and term life insurance. These types of insurance are relatively simple financial instruments, in the sense that the buyer typically has a clear understanding of what he or she is purchasing, and the policies can be priced and/or underwritten with a small amount of information. For example, most drivers are familiar with the basic automobile insurance concepts (e.g., the difference between liability, collision, and comprehensive coverage, and the meaning of a deductible), and a policy can be priced based on the buyer's address, make/model/year of vehicle, and driving record. Thus, the process of providing a buyer with a quote and taking an application for an automobile policy, is relative simple.
Some types of insurance, however, are complex in the sense that they involve a large number of factors and choices. Valuable personal property (“VPP”) insurance (which is sometimes referred to as “personal articles” insurance or, for historical reasons, “inland marine” insurance) is a type of insurance that often involves complexities in taking an application or quoting a price. On-line buyers often become bewildered by web transactions that become complicated. Such buyers may decide to abort the transaction before completing it, or may complete the transaction incorrectly.